Goosehead Insurance (GSHD) Cooled Down in Q2 Following a Strong Run

Wasatch Global Investors, an asset management company, released its “Wasatch Small Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. small-cap stocks experienced significant gains this quarter, despite volatility. They initially dipped after President Trump announced unexpectedly high tariff rates, but quickly rebounded as his economic team showed signs of softening their stance. Against this backdrop, the Strategy performed in line with the Russell 2000® Growth Index’s 11.97% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Wasatch Small Cap Growth Strategy highlighted stocks such as Goosehead Insurance, Inc. (NASDAQ:GSHD). Goosehead Insurance, Inc. (NASDAQ:GSHD) is a holding company for Goosehead Financial, LLC, which offers insurance agency services. The one-month return of Goosehead Insurance, Inc (NASDAQ:GSHD) was -10.75%, and its shares gained 4.92% of their value over the last 52 weeks. On August 4, 2025, Goosehead Insurance, Inc (NASDAQ:GSHD) stock closed at $88.65 per share, with a market capitalization of $3.33 billion.

Wasatch Small Cap Growth Strategy stated the following regarding Goosehead Insurance, Inc (NASDAQ:GSHD) in its second quarter 2025 investor letter:

“Goosehead Insurance, Inc (NASDAQ:GSHD) also detracted. Through its network of franchisees and corporate agents, Goosehead brokers insurance products from a wide range of carriers. Fundamentals for the business remain robust, but after a strong run by the stock over the past year, it gave back some ground this quarter. Looking ahead, we continue to like Goosehead for its innovative business model, which leverages technology to manage a variety of customer-service and back-office functions, allowing its brokers to focus primarily on sales.”

Why The Home Depot (HD) Remains a Reliable Dividend Pick in the Dogs of the Dow

An insurance broker discussing policy options with a homeowner.

Goosehead Insurance, Inc (NASDAQ:GSHD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Goosehead Insurance, Inc (NASDAQ:GSHD) at the end of the first quarter, compared to 25 in the previous quarter. In Q2 2025, Goosehead Insurance, Inc’s (NASDAQ:GSHD) revenue grew 20% year-over-year to $94 million. While we acknowledge the risk and potential of Goosehead Insurance, Inc (NASDAQ:GSHD) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Goosehead Insurance, Inc (NASDAQ:GSHD) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Goosehead Insurance, Inc (NASDAQ:GSHD) and shared the list of companies with at least 30% annual growth rates. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.